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        <h2 class="text-3xl mb-2 font-bold">Part 2: Investment Strategies</h2>
        <h4 class="text-xl font-bold my-2">Setting Goals And Making Plans</h4>
        <p class="mb-2">
            Once you realize how much information is available in The Value Line
            Investment Survey, the next step is figuring out how you can use it.
        </p>
        <p class="mb-2">
            Before you begin to invest in stocks, you need to decide what you
            want to accomplish.
        </p>
        <p class="mb-2">
            The first and most important step is to define your financial goals
            and determine when you will need the money to meet these goals.
        </p>
        <p class="mb-2">Then you can plan an investment strategy.</p>
        <p class="mb-2">
            Once you have determined your financial goals, you can begin to
            create an investment plan for meeting them.
        </p>
        <h4 class="text-xl font-bold my-2">
            Investment Strategy
        </h4>
        <p class="mb-2">
            An investment strategy is a plan for selecting financial vehicles
            that can help you meet your goals. It involves identifying both the
            appropriate types of investments and the most suitable individual
            investments within each type.
        </p>
        <p class="mb-2">
            Developing and sticking to an investment strategy provides much
            sounder long-term results than buying stocks or other investments at
            random, even if individually they may be smart choices with strong
            performance potential.
        </p>
        <h4 class="text-xl font-bold my-2">
            Investment Styles
        </h4>
        <p class="mb-2">
            For the purposes of this explanation, there are three basic styles
            of investing: conservative, moderate, and aggressive. In brief, a
            conservative investor wants to protect principal and earn income; a
            moderate investor is willing to take a certain amount of risk to
            achieve some stock price appreciation as well as current income; and
            an aggressive investor is primarily concerned with high overall
            returns even though it means taking more risk.
        </p>
        <p class="mb-2">
            Whichever type of investor you are, you can use the information
            Value Line provides as a tool for finding the investments best
            suited to your goals and your style.
        </p>
        <h4 class="text-xl font-bold my-2">
            Diversification
        </h4>
        <p class="mb-2">Smart investors build diversified portfolios.</p>
        <p class="mb-2">
            You create a diversified stock portfolio by buying a variety of
            stocks in a range of different industries. For most individual
            investors, a practical approach is to own at least 10 stocks in
            approximately equal dollar amounts in several diverse industries.
        </p>
        <p class="mb-2">
            Diversification is important because portfolios with several
            different investments usually produce a more consistent and stable
            total return than portfolios with just one investment. If you own
            just one stock and it drops dramatically in value, the value of your
            investment portfolio also drops sharply. But if you own 10 stocks in
            different industries, the likelihood is that even if some of them
            decline in price, others will increase or, at the very least, remain
            stable. Decades of investment analysis demonstrate the validity of
            the diversification approach.
        </p>
        <p class="mb-2">
            Although your portfolio might not gain as much as if all your money
            were invested in one stock whose price escalated quickly, it is
            unlikely to lose as much either. It is important to remember that it
            is difficult to predict which individual stock will be a winner.
        </p>
        <p class="mb-2">
            Remember, too, that you ought to think of a diversified stock
            portfolio as one component of an overall diversified investment
            strategy which could include bonds, cash, real estate, etc.
        </p>
        <h4 class="text-xl font-bold my-2">Risk</h4>
        <p class="mb-2">All investments involve risk of one kind or another.</p>
        <p class="mb-2">
            The general rule of investing is that risk is linked to total
            return, or what you get back in terms of price appreciation and
            dividends on your investment. The greater the risk you take, the
            greater your return should be. The less risk you take, the less
            return you should expect.
        </p>
        <p class="mb-2">
            You can manage the risk of losing money when you invest in stocks by
            creating a diversified portfolio of a variety of stocks in a range
            of different industries. That allows you to balance potential losses
            in one stock against potential gains in another, since certain
            stocks and certain industries tend to perform well when others lag
            and vice versa.
        </p>
        <p class="mb-2">
            You assess risk as part of making investment choices. If you are
            primarily concerned with preserving your principal, you should build
            your portfolio around stocks that Value Line ranks 1 or 2 for
            Safety. The return based on price appreciation that you can expect
            on those stocks may be lower than the return you could expect from
            stocks with lower Safety ranks. On the other hand, you can be fairly
            confident that those stocks will be more price-stable than the
            broader market during a period of falling prices, even though there
            is no guarantee that, in a market slide, these stocks won't also
            decline in value.
        </p>
        <h4 class="text-xl font-bold my-2">
            Stock Valuation
        </h4>
        <p class="mb-2">
            You might hear a stock described as overvalued or undervalued.
            That's generally a comment on how much investors are currently
            paying for the stock in relation to the valuations of other stocks.
        </p>
        <p class="mb-2">
            An overvalued stock is often one whose P/E ratio is high relative to
            the rate at which a company's earnings are likely to grow. In some
            cases, the future performance of these stocks may not be able to
            sustain the high expectations implicit in the price investors are
            paying. However, overvalued stocks often get positive press
            coverage, which builds enthusiasm for the stock and elevates the
            price even more, at least for a time. In a downturn, the price
            typically falls until the stock's P/E is more in line with the
            median P/E of the approximately 1,700 stocks in the Value Line
            universe.
        </p>
        <p class="mb-2">
            In contrast, an undervalued stock is selling at a P/E that is modest
            relative to other stocks in the Value Line universe, investors can
            reap the benefit of strong future performance. Assuming that enough
            investor attention shifts to a stock’s merits and demand for the
            stock increases, so too will the price.
        </p>
        <h4 class="text-xl font-bold my-2">
            Book Value
        </h4>
        <p class="mb-2">
            Book value is the amount that would be left for common shareholders
            if all the tangible and intangible assets of a company could be
            liquidated and all the long and short-term debt, taxes, and
            preferred shareholders were paid. Tangible assets include the
            physical plant, inventories and money the company is owed, while
            intangible assets are the value of patents or brand names (often
            known as "goodwill").
        </p>
        <p class="mb-2">
            Value Line calculates the book value per share for every company,
            and also indicates in a footnote how much of a company's book value
            is based on intangibles. Conservative investors may want to deduct
            these amounts when they are analyzing the financial strength of a
            company.
        </p>
        <h4 class="text-xl font-bold my-2">Dividends</h4>
        <p class="mb-2">
            Dividends are the part of its annual profits that a company pays to
            its stockholders as income. That percentage is called the stock's
            payout ratio. Well-established companies are more likely to pay
            higher dividends than smaller or growth-oriented companies that
            often prefer to use their profits to fund additional expansion.
        </p>
        <p class="mb-2">
            A per share dividend as a percentage of a stock's current price is
            the "yield" to the investor. Investors seeking income will typically
            look for stocks with above average dividend yields.
        </p>
        <p class="mb-2">
            One consequence of earning dividends is that they are taxable,
            whereas price appreciation of a stock is not taxed until the stock
            is sold.
        </p>
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